What Does Buyer under Contract Mean

For anyone in the process of buying a home, you`ll likely come across the term “buyer under contract.” This is an important term to understand, as it signals a major milestone in the home buying process.

So, what exactly does “buyer under contract” mean?

Essentially, when a buyer is under contract, it means they have signed a legally binding agreement to purchase a particular property. This agreement is known as a purchase agreement, or a contract of sale.

Once a buyer and seller have agreed to the terms of the purchase agreement, and both parties have signed the document, the buyer is considered to be under contract. At this point, the buyer is committed to purchasing the property, and the seller is committed to selling it.

Being under contract typically means that the buyer will have a specific timeline in which they must complete certain tasks, such as obtaining financing, completing a home inspection, and arranging for any necessary repairs. The contract may also stipulate that the buyer puts down a certain amount of money in earnest money, which serves as a deposit on the home.

One important thing to note is that a buyer under contract does not necessarily mean the sale is final. There are a number of things that can happen during the contract period that could cause the deal to fall through, including issues with financing, inspection problems, title issues, and more. However, once the contract is signed, both parties are obligated to follow through with the terms of the agreement unless the contract includes clauses for termination.

So, why is it important to understand what “buyer under contract” means?

First and foremost, it helps you understand where you are in the home buying process and what steps you need to take next. Additionally, knowing that you are under contract can give you peace of mind and help you feel more secure in your purchase.

It`s also important to note that being under contract can affect your ability to make other offers on properties. If you are under contract on one property, you may not be able to make an offer on another property until the first contract is terminated.

Overall, being under contract is a significant milestone in the home buying process, and it`s important to fully understand what it means. If you have any questions about the contract or the home buying process in general, it`s always a good idea to consult with a trusted real estate professional.